The Taiwan Stock Exchange will continue to be the safest harbour for the island's tech companies and FIT Hon Teng Ltd's listing in Hong Kong last month should not raise concerns that more firms will list there, a top executive said on Tuesday. "We don't need to worry about which companies might choose not to list in Taiwan," Senior Vice President Chien Lih-chung told Reuters. "What we worry about is whether we have built a transparent and advanced platform."
FIT Hon Teng listed on the Hong Kong stock exchange on July 13 and its shares have since shot up nearly 50 percent. The firm is a cable and connector division of the Foxconn Technology Group - the world's largest contract electronics manufacturer and a major supplier of components to Apple Inc.
FIT Hon Teng's successful debut and Foxconn's decision to list in Hong Kong have raised investor concerns that despite Taiwan's dominant position in the technology supply chain for major global technology brands, the island is increasingly ceding its advantages to Hong Kong and China. Chien said the Taiwan exchange offers companies greater long-term value.
"Those Taiwanese tech companies considering listing in Hong Kong should also consider the prospect of their subsequent fundraising's, where Taiwan can provide strong and sustainable momentum," he said. Hon Hai Precision Industry, Foxconn's biggest unit, has expanded its paid-in capital to T$173.3 billion ($5.7 billion) from nearly T$600 million when it debuted in 1991, he said.